Write 10 pages thesis on the topic global and products industry porter's six forces analysis.

Write 10 pages thesis on the topic global and products industry porter's six forces analysis. Porter’s six forces analysis of the global paper industry would involve certain factors such as threat of new entrants, rivalry among existing firms, threat of substitute products or services, bargaining power of buyers, bargaining power of suppliers and relative power of other stakeholders. The explanations of the factors are given below:

Threat of New Entrants

Economies of scale

The Gross Domestic Product (GDP) of the global paper industry has increased simultaneously with the growing usage of the paper by its consumers. In certain cases, the usage of papers remains intact where the GDP growth is witnessed to be almost stagnant. The global paper industry produces paper products of $750 billion each year comprising small enterprises globally (Scheihing, 2005).

Product Differentiation

Product differentiation is one of the most challenging measures of expanding or intensifying a business or industry. With the intense use of internet, the usage of paper is however decreasing day by day and as a result the global paper industry is trying to diversify or differentiate their products and trying to expand their product lines, especially based on the quality aspect (Scheihing, 2005).

Capital Requirement

A new entrant to the paper industry initially requires around $4.5 Million capital which may be recognized as a demanding level to position themselves in the industry (Scheihing, 2005).

Switching Cost

The switching cost for the paper industry is low. Therefore, the scope of new entrants is high, as new entrants can any time switch over to another industry if they do not feel competitive in the paper industry incurring minimum cost (Uronen, 2010).